All Forum Posts by: Cydney Gray

I want to give you guys an example of a deal that is available right now in Oahu, Hawaii. It is a 4 plex listed at $1,175,000. Don't choke on that price! If you got a FHA loan, you can use the rental income to help you qualify for the payment and you could get in at only 3.5% down. I know that's over $40k but if you have it to invest, this is a pretty solid asset to live in and hold. Rents would be approx $6000 a month from the other three units. You could live in one. The mortgage payment including taxes and insurance would be around $8150. You could live in the additional unit for $2100 a month. That is about $350 over what it would rent for and you would own 4 units in Hawaii. All of these numbers are close approximations and interest rates change everyday so this is just todays example of cost. This is assuming that you qualify for the payment using your earned income. I am not a Realtor. This is not my listing. I don't know anything about this listing except I saw it on the internet. I am a lender. I just want to show you that there are deals everywhere if you explore and understand your financing options.

https://www.zillow.com/homedetails/94-110-Pupunohe-St-Waipahu-HI-96797/300182840_zpid/?

Hey Again Josh!
The DSCR loan is easier because there is less paperwork needed from you (no income documents) but it generally comes with a prepayment penalty. From the thread it looks like you're looking to do a fix and flip so watch the prepayment penalty and make sure the expiration of the penalty matches up with you timeline to sell.
You can use your income documents for all of the mortgages you apply for. Every loan using your income documents being reviewed (underwritten) will take into consideration your current earned income and compare it to your monthly obligations. If you still have this purchase mortgage on your credit (if you haven't sold it yet) it will be considered a debt you are financially responsible for. 
I would suggest finding a local mortgage broker to have a longer discussion with to map out your goals for this property and for the next couple of years. Partner with that lender to get pre-approved for this loan and get a clear understanding on how the lending can work for your next couple of projects or acquisitions. Make sure your lender is looking at all aspects of your real estate goals and make sure what you do today will not adversely effect your options for tomorrow. 
I hope this purchase is one of the best steps to your financial freedom :)

Keep all properties and save up or cash out of other properties to buy more. The only real regret you'll have with real estate is selling, and losing future appreciation, if you  don't have to. 

Aloha~ I am on Oahu and specialize in creative financing specifically for investments. I can answer any questions you may have about the types of financing available for your purchase. Some of our local banks and credit unions have great deals - much better than national lenders.  I'm happy to help.

Hey Josh! There are two really good options for you. If you want to (and can) qualify for the purchase using your earned income and income documents (pay stubs and w2s) you can get the best rate and terms available. If you don't want to (or can't) use your own income to qualify for the purchase, you can use the future rental income to debt service the mortgage payment. The rate for this will be a bit higher than if you use your own income documents. This is called DSCR (debt service coverage ratio). Since you don't have any previous home ownership or landlord history, you'll need to be very specific about that in looking for financing. They are several investors that have this program available for you, you'll just need to find them.